Indonesia’s Inflation Rate up 4.14 Percent in January

Jakarta, 22 Rabiul Akhir 1437/1 February 2016 (MINA) – Indonesian consumer prices index rose 4.14 percent in January from a year earlier, compared with 3.35 percent at the previous month largely due to higher food prices, the statistics bureau said on Monday.

Core inflation, excluding volatile component and prices determined by the government, eased to 3.62 percent in January from 3.95 percent a month before, Suryamin, head of the National Statistics Bureau (BPS), said.

“Foods still contribute the highest (to inflation), similar with that of last year,” he told a press conference at the bureau headquarters.

On a monthly basis, inflation slowed at 0.51 percent in January compared with 0.96 percent in December, Suryamin said.

Indonesian central bank cut its benchmark interest rate by 0.25 percent to 7.25 percent last month, the first time since February 2015, following mounting pressure to take the loosening policy despite the rupiah being weakened to the lowest in six years against the U.S. dollar, Mi’raj Islamic News Agency (MINA) reported, quoting Xinhua.

Indonesia’s GDP growth is expected to be the slowest in six years of between 4.7 to 4.8 percent in 2015, according to the central bank. (T/R07/R01)

Mi’raj Islamic News Agency (MINA)